Shares of Reliance Industries Ltd declined more than 3% on Thursday after its Canada-based partner Niko Resources said that the firms's flagging KG-D6 gas block holds 80% less reserves than previously estimated.
After a weak opening, shares of the company further lost 3.49% to touch a low of Rs. 711.85 on the BSE.
Similarly, at the NSE the heavyweight stock dropped 3.49% to Rs. 711.60.
The stock was the worst performer among the BSE 30-scrip index, Sensex.
Decline in the stock pushed the BSE Sensex 52.80 points down to 16,843.83 at 1257 hrs.
Proved plus probable reserves at Krishna Godavari basin D6 block has decreased to 1.93 Trillion cubic feet from about 9.65 Tcf previous estimate, Niko said in a statement.
Niko holds 10% stake in KG-DWN-98/3 or KG-D6 block where RIL is the operator with 60% interest. The remaining 30% is held by BP plc of UK.
In its 'Reserves and Contingent Resources Update', the Canadian oil and gas producer said total proved plus probable natural gas reserves in its various blocks have fallen almost 51% to 377 billion cubic feet equivalent (bcfe) mainly due to lower reserves in KG-D6.